The Path Forward

The Path to Financial Freedom – God’s Way

1. Acknowledge your role as God’s Steward

2. Establish your giving plan.

3. Establish a cash reserve of at least $1000

   • Allows you to avoid more borrowing when the unexpected occurs

4. Develop and follow a financial plan

   • Ensure your monthly expenses do not exceed your monthly income

   • Reconcile your budget to your bank account monthly

   • Use your monthly surplus (Income – Expenses) to achieve long term goals

5. Ensure you have adequate insurance to provide for your family (life insurance, disability insurance, property insurance)

6. Eliminate all consumer debt (credit card, automotive, etc.)

   • Commit yourself to avoiding using debt for any future consumer purchases.

   • Start with smallest debts first

   • Once one debt is gone, apply that payment plus surplus to next debt until all debts are gone.

   • Once the automotive debt is gone, start auto savings plan to allow next purchase to be cash

7. Develop a contingency fund of 3-6 months living expenses

   • Keep in a liquid low risk investment (i.e. – Money Market Fund, GIC, Government Bonds, etc.)

   • This allows you to be your own bank when the unexpected occurs.

8. Invest to meet long term goals as directed by the Lord

   • Mortgage elimination,

   • College funding

   • Retirement

   • Other

Key Things to Remember:

1. The Key to Financial Maturity is Delayed Gratification. 

2. Every financial decision is a spiritual decision

3. Never make a decision when you are in a hurry.  Take time to pray and evaluate

4. If you do not have peace about it, don’t do it.

5. Avoid speculation.  Do not invest hastily, or in areas you are not familiar with.

6. Debt is not a sin, but is dangerous and discouraged.

   • Most new vehicles depreciate 60% in the first 4 years, and should be considered a luxury that we should avoid unless you are debt free and your long term goals have been met.

   • Buy good used vehicles rather than new, and use the money you save to eliminate debt, pay down your mortgage early, or save for long term goals such as College or Retirement.

7. Establish a Will and Estate plan

   • Ensures those you leave behind will be cared for according to your wishes, not the governments.